What’s going on with fuboTV (NYSE:FUBO) today? FUBO shares fell more than 5%, which is clearly in favor of general markets. Besides, it is Nasdaq 100 is lower by more than 1%. However, the company recently released some good news: a exciting deal with the English Premier League (EPL).
This morning, fuboTV announced that it had acquired exclusive rights to stream EPLs in Canada for the next three years. The EPL is the highest English football league and the most watched football league in the world. In addition, fuboTV will have these rights from the 2022 season to 2023. As a result, all 380 Premier League matches will be broadcast on fuboTV via the Fubo Sports Network. However, the media catalog of the platform in Canada is not as developed as in the United States. Using fuboTV, Canadian users can access about a dozen channels for $ 15 a month or $ 100 a year.
FUBO stock: fuboTV acquires EPL rights in Canada
The cost of acquiring these fuboTV streaming rights has not been disclosed. However, it can be assumed that rights have a high price. According to the allegations Globe and mail, Sports NBC paid more than $ 2.7 billion for the exclusive streaming of EPL in the United States in a six-year contract. That number is about $ 450 million each year.
When it comes to EPL rights in Canada, fuboTV CEO David Gandler satisfied with the agreement. Gandler added:
“The Premier League is considered the best football league in the world and has a huge fan base in Canada […] This business allows us to bring another top-notch property to fuboTV, further differentiating our content offering and giving Canadians another reason to cut the string for exciting, exclusive sports content.
All of this was recently done by Wedbush analyst Michael Patcher lowered its target price for FUBO stocks, from $ 53 to $ 32. However, the target price of $ 32 still represents a more than 130% increase from current prices. Patcher says he lowered the target because of a “mostly unjustified” price cut. In addition, the analyst expects “cable cutting and shaving to continue in the near future” as the trend from linear television to over-the-top (OTT) and connected television (CTV) continues. Patcher also believes that fuboTV’s focus on sports betting and gambling will allow the company to differentiate itself from other streamers and accelerate subscriber growth.
At the date of publication, Eddie Pan did not have (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.